More HDB resale flats sold last month; prices ease slightly, Latest Singapore News - The New Paper

More HDB resale flats sold last month; prices ease slightly

This article is more than 12 months old

Sales of HDB resale flats increase by 16.5%, which analysts attribute to more units hitting five-year minimum occupation period

The sales of Housing Board resale flats rose last month, according to flash estimates from real estate portal SRX Property yesterday.

Estimates showed that 1,931 resale flats were sold last month.

In March, the figure was 1,657, which means there was a 16.5 per cent spike. Prices eased slightly.

Data from SRX showed a 0.4 per cent dip in last month's resale prices, compared with figures for March. Prices were also down 0.6 per cent from April last year and 14 per cent from the peak in April 2013.

The increase in sales was expected because there are many flats reaching their minimum five-year occupation period this year, which makes them eligible for resale, Ms Christine Sun, OrangeTee & Tie research and consultancy head, said.

She said the policy tweaks that may allow buyers to use more Central Provident Fund funds to buy older flats may spur demand for older flats in the coming months.

"Some older flats are currently attractively priced, especially those located within mature estates which boast a host of amenities and proximity to the city centre," she said.

Meanwhile, mature estates recorded a year-on-year price decrease of 1.4 per cent while prices for non-mature estates remained stagnant.

When compared with figures from March this year, mature estates saw a 0.7 per cent drop in prices, while non-mature estates had a price decrease of 0.1 per cent.

According to SRX, only four-room flats recorded a price increase by 0.2 per cent.

The three-room, five-room and executive flats dropped by 1.6 per cent, 0.2 per cent, and 1.6 per cent, respectively.

Ms Sun noted that the fall in prices could be due to a general price weakness of older flats in mature estates.

She said: "Some owners may have accepted lower price offers in light of rising competition from newer flats in non-mature estates reaching their five-year minimum occupancy period and concerns about the depreciating value of ageing flats."

The overall median transaction over X-Value (TOX) was negative $1,000 last month, a $1,000 decrease from March.

The median TOX measures whether people are overpaying (in the case of a positive TOX) or underpaying (when there is a negative TOX) relative to the SRX Property X-Value estimated market value for flats.